Big Six responds to Energy White Paper

Response by the Big Six energy companies to the Government’s electricity market reforms is that it will force energy bills to increase.

Chris Huhne, Energy Minister has admitted that consumers would need to pay to secure a low carbon future when he presented the energy White Paper this week to parliament.

Prior to the presentation of the White Paper two of the Big Six energy companies have already increased their prices above inflation.

Centrica’s energy managing director, Mark Hanafin, said that the EMR is an important step that will come at a cost.

Mr. Hanafin also said that there was much detail to resolve in order for investors to remain confident that the regulatory environment and tax will still make the UK energy sector a ‘good place’ to invest in.

He further stated that government, the industry and regulators need to be open and transparent to the public about the true status of these changes as these measures will ‘come at a cost’.

David Cockshott of director of Npower has said that they had found many of the major energy users were concerned about this legislation that is outlined in the EMR and what impact it will have on their operations in the UK.

He said the White Paper does provide some clarity on UK’s energy market future, but it might not provide assurance that energy users may be looking for.

Vincent de Rivaz CEO of EDF Energy that these moves are good news for policy makers, consumers and investors. He continued... that it will encourage investment in generation that is low carbon and also not dependent on the fossil fuel prices.

He also said that it is important to continue with dialogue on energy costs because trust is ‘the essence of a healthy market’.

The industry, consumer bodies, the regulator and government will need to work together in the future in order to build understanding. They need to review the UK’s aging energy infrastructure which comes at a cost; however, the EMR will mean that the costs will be kept to the minimum.

CEO of Scottish and Southern Energy, Ian Marchant said that any changes of the market arrangement for electricity will need to be thought out carefully in such a way that it will avoid unintended consequences as well as to be supportive of investment that is required at present and also in the next few years.

He said that it is on this basis that they will ultimately judge the White Paper overall and to ensure that it is achieved they will continue working with the UK government as well as other interested stake holders.

CEO of E.ON, Dr Paul Golby, said that we cannot be complacent about this; he felt it was important to drive forward to ensure that the future is a cleaner energy for everyone he further stated that the onus was not just on energy companies to transport, produce and supply energy in the most efficient manner possible, but that we need to remember that it is also about helping customers who have a vital role to play in the whole process.

He also said that consumers need to become more ‘energy fit’, they can do that by insulating their homes, generating their own power and moderating their energy usage, all customers can become part of the whole by doing their bit to reduce their bills as well as their carbon emissions.